Article by Ex Petrosen Executive., page-10

Topic from interview.

Disposal of interests (shares)

The assignment of interests between partners or with a third party entity is a common practice in the upstream oil sector. If one of the partners constituting the contractor wants to make a partial or total transfer of its shares (assigning Party) to a corporation (Transferee) not its affiliate, the Association Agreement provides that it is required to inform the Minister and his partners. These have 30 days to exercise their preemption (First Refusal right)
If the other partners are interested in buying the shares to be sold, they will notify the supplier Party. And the purchase will, each in proportion to its interest.
If the partners are not interested in the redemption of units to sell and does not pronounce within 30 days of the announcement of the intention to sell, the supplier Party shall have the right to sell to a third party who will be place in association with the contractual rights and obligations that result.
This is common practice and regular in the oil industry, which is most often foreign partners and their ownership interests in the oil plates, does not mean sharing our wealth in our back, as stated in a recent publication.
Now that the oil Senegal destination is confirmed, we expect that our country will be the scene of harsh quarrels not only between small and big companies but also between large western calibers, with the approval of their governments.
Small companies have weakness of not having a strong back. Their debt capacity is limited, they have difficulties, after a discovery of hydrocarbon commercial deposit, to continue investing in development and operations which require billions of dollars.
This explains, moreover, the lust of the Majors. It is hardly surprising that some of our compatriots themselves up, consciously or unconsciously, by advocates of such companies. We must remain vigilant.